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Q:
Why can't I just negotiate with creditors on my
own?
A:
In some cases, you can negotiate with creditors
on your own to arrange payment or have positive
information reported to a credit bureau. However,
to get the benefits of lowered monthly payments,
lower interest rates, stopped late charges, and
waived over the limit fees, you need ElimiDebt.
As a non-profit organization, ElimiDebt credit
counselors can secure you these benefits not usually
available to credit consumers.
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Q:
Why can't I just keep paying off my creditors
on my own?
A: If you
keep paying just the minimum to your creditors
at the current interest rate, it will take you
much longer than if you paid off your debt through
ElimiDebt. A $10,000 debt usually takes 32 years
and $24,500 to pay off, if you are paying the
monthly minimum of 2.5% of the balance at an average
interest rate of 18.5%. Because we may be able
to reduce your interest rates, stop over the limit
fees, and so on, it will take a lot less time
to pay off your debt through us. Chances are,
in the past, all your debt payments have just
gone to pay off interest. You probably haven't
even reduced the balance! On average, ElimiDebt
clients pay off their debts in 3 to 5 years, depending
on individual circumstances.
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Q:
How much will it cost me to be on the Debt Management
Program?
A: Due to
the fact that ElimiDebt is a non-profit organization,
we do not charge any advance fees for our service.
We do request that clients make a monthly contribution
to our organization to cover the costs involved
in handling the accounts on a monthly basis. As
a non-profit organization, ElimiDebt depends on
these small contributions to meet our operating
costs. Our clients find that their increased cash
flow from lower monthly payments, interest rate
reductions and stopped late charges more than
covers the cost of the monthly contribution.
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Q:
How will joining ElimiDebt's Program affect my
credit rating?
A1: Do you
have a good credit history? If yes, then you should
be aware that your credit report may state that
you are working through ElimiDebt. We can't guarantee
how future creditors will interpret this information,
but we believe that it shows you are trying to
get help. Your credit report probably states that
you've been carrying balances, made late payments
in the past 7 years, or even missed payments,
so it may not be as perfect a credit history as
you think.
A2: If no,
then ElimiDebt can only help you. If you make
your payments in full and on time to ElimiDebt,
then many of your creditors will "re-age"
your account, which means they will show your
accounts as current after several payments. In
general, if you are paying off debt, that can
revitalize your credit report. Showing that you
are working through a credit counseling service
may show future creditors that you needed help
but wanted to pay off your debts in full.
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Q:
Can I send in more money once I have a better
cash flow?
A: Of course
- you can always increase your monthly payment.
The more you pay, the faster your accounts will
be paid off. Just let ElimiDebt know you want
to increase your payments beforehand so we can
figure out which creditors to pay more money.
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Q:
Should I pay my bills in the time before I send
you my first payment?
A: That's
your decision, however we recommend that you do
if you can. There is a brief negotiation period
of approximately 30 days after we receive your
first ElimiDebt payment. During this time we make
arrangements for future payments with creditors.
If you miss due dates for accounts during the
negotiation period, you are at risk of penalties
and negative information reported to the credit
bureau.
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Q:
After I pay off one account, can I just pay less?
A: That's
your decision, but we highly recommend that you
pay the same amount and transfer whatever you
used to pay for the other account to a high interest
account. That way, as you pay off each account,
you end up paying more to the remaining accounts,
speeding up the process without changing your
monthly spending budget.
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Q:
Will I still receive harassing phone calls?
A: You might
the first several months on the program since
it takes time for your creditor's collections
department to find out you're with ElimiDebt.
If you get a harassing call, inform the party
to call ElimiDebt and speak to your account specialist.
If you get a harassing call from a collection
agency that is not part of your creditor's company,
we will provide you with a cease and desist letter.
3rd party collection agents must obey this letter,
according to the Fair Debt Collection Practices
Act. Make sure you tell your account specialist
if you receive any such calls from a collection
agent.
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